The financial and operational risks facing physical therapists and physical therapy practices have intensified significantly over recent years, according to a comprehensive new industry analysis. The Physical Therapy Professional Liability Claim Report: 5th Edition, recently published by Healthcare Providers Service Organization (HPSO)—part of the Healthcare division of Aon Affinity, the affinity business of Aon plc—in partnership with CNA, reveals that the average total incurred cost for professional liability claims involving physical therapy professionals has jumped by 20.3% to reach $162,174.
This sharp increase in financial severity underscores a broader transformation in the risk landscape for rehabilitation specialists. Beyond the rise in average overall costs, the data shows a notable shift toward higher-severity payouts. Specifically, the share of claims closing in the substantial indemnity range between $250,000 and $749,999 has risen from 9.3% to 13.7% since the publication of the previous dataset in 2020. This trend indicates that when professional liability claims do reach resolution or trial, the financial consequences for practitioners and practice owners are becoming increasingly severe.
The newly released report examines a wide array of professional liability exposures facing physical therapy professionals and practices today. These include emerging claim trends, complex licensure defense matters, detailed case studies, expert analysis, and actionable risk management insights. By examining these factors, industry leaders hope to shed light on the primary drivers behind modern litigation and regulatory scrutiny in the rehabilitation sector.
Jennifer Flynn, vice president of risk management for Healthcare Providers Service Organization, noted that the modern practice environment requires heightened vigilance from rehabilitation providers. Physical therapy professionals are deeply committed to delivering safe, effective care that helps patients function at their best, Flynn observed. However, she emphasized that they now practice in an environment marked by increasing complexity and evolving risks. She explained that the newly released report was specifically designed to provide physical therapists, physical therapist assistants, and practice owners with the insights and strategies necessary to help minimize their unique professional liability exposures.
The general analysis contained within the fifth edition report is derived from an extensive review of 497 closed professional liability claims. These cases involved physical therapists, physical therapist assistants, physical therapy practices, and other healthcare practitioners who provided services as employees of an insured physical therapy practice. The dataset captures claims that resulted in an indemnity payment of $10,000 or greater between January 1, 2020, and December 31, 2025, which is referred to in the report as the 2026 dataset. By analyzing these closed claims, the report aims to pinpoint the exact clinical scenarios, operational vulnerabilities, and administrative pitfalls that most frequently lead to legal action or disciplinary proceedings.
Among the central findings of the report are heightened risks associated with specific clinical interventions and practice management areas. The data highlights growing vulnerabilities related to manual therapy techniques, patient monitoring protocols, injury management during sessions, practice-level claims, and licensure defense proceedings. These areas represent critical touchpoints where minor miscommunications, documentation lapses, or deviations from established standards of care can quickly escalate into formal legal challenges or licensing board investigations.
Crystal Miller, RPLU, CPCU, underwriting director at CNA, emphasized the importance of proactive risk mitigation in light of these findings. By understanding the factors that lead to claims, physical therapy professionals and practices can take proactive steps to help reduce risk and lower the chance of litigation, Miller stated. She added that the primary goal of the report is to raise awareness of prevailing trends and claim drivers to enhance risk management knowledge and ultimately support safer care environments for physical therapy professionals and their patients alike.
To help practitioners translate these insights into daily operational improvements, HPSO plans to release a targeted educational initiative in the coming months. The organization will roll out a series of seven Physical Therapist Spotlights. These installments will include direct links to specialized resources designed to highlight risk control best practices across several key operational areas, including clinical documentation standards, strategies for effective licensure defense, and the safe integration of emerging technologies into physical therapy practice.
The publication of the Physical Therapy Professional Liability Claim Report: 5th Edition represents an ongoing, collaborative commitment by CNA and HPSO to the continuous education and professional support of the physical therapy community. By pooling their extensive industry data and risk management expertise, the organizations aim to equip rehabilitation providers with the empirical evidence and practical guidance needed to navigate an increasingly litigious healthcare environment.
Physical therapists, physical therapist assistants, practice owners, and other stakeholders seeking a deeper understanding of these liability trends can access the complete findings, expert commentaries, and data breakdowns. The full report is available for download directly through the Healthcare Providers Service Organization website at https://www.hpso.com/ptclaimreport.
